the role of the internet in the car purchasing process julie forey head of research msn uk
TRANSCRIPT
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The Role of the Internet in the
Car Purchasing Process
Julie ForeyHead of Research
MSN UK
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Agenda
• Objectives
• Methodology
• Main Findings- Sources used - Role of the internet- Advantages & disadvantages
• Summary
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Objectives
• Understand the role of the Internet in the car purchasing decision making process
• Establish its relative importance compared to other information sources
• Understand specifically what the Internet is used for
• Establish perceived advantages and disadvantages of the online medium
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Methodology
Stage 1
• 2 Group discussions to better understand the car purchasing procedure to aid quant questionnaire- Intender audience (next 6 months)
- Purchaser audience (last 6 months)
Stage 2
• 1000 interviews among GB adults (face to face omnibus survey of both online and offline respondents) to establish market size & priority of information sources
Stage 3
• Bespoke online survey among Internet users- 280 respondents that had purchased a new/used car in the last 6 mths
- 200 respondents that intended to purchase a new/used car in the next 6 mths
Fieldwork for all three stages conducted between May and June 2004 by NOP World
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Who has bought a car in the last six months?
Base: All GB adults
16%
22%
11%13%
22%24%
21%
12%
7%
0%
5%
10%
15%
20%
25%
30%
AllMen
Wom
en
17-2
425
-34
35-4
445
-54
55-6
465
+
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Net users are more likely to have bought a car in the last 6 months
20%
13%
16%
0%
5%
10%
15%
20%
25%
All GB Adults Internet Users Non Net Users
Base: All GB adults
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Sources Used
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The internet is 3rd most popular source used in decision making process
48%
36%
33%
31%
29%
23%
19%
19%
18%
16%
15%
12%
11%
8%
12%
Car dealership personnel
Friends' advice
Internet
Car magazines
Brochures
Newspaper ads
Consumer reports
Magazine ads
Online advertising
TV ads
TV programmes
Posters
Leaflets
Radio ads
None of these
Base: All GB adults who have bought a car in last 6mths
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The internet is 3rd most popular source used in decision making process
48%
36%
33%
31%
29%
23%
19%
19%
18%
16%
15%
12%
11%
8%
12%
Car dealership personnel
Friends' advice
Internet
Car magazines
Brochures
Newspaper ads
Consumer reports
Magazine ads
Online advertising
TV ads
TV programmes
Posters
Leaflets
Radio ads
None of these
Base: All GB adults who have bought a car in last 6mths
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And the No.1 Media Source …..
33%
31%
29%
23%
19%
18%
16%
15%
12%
11%
8%
12%
Internet
Car magazines
Brochures
Newspaper ads
Magazine ads
Online advertising
TV ads
TV programmes
Posters
Leaflets
Radio ads
None of these
Base: All GB adults who have bought a car in last 6mths
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The internet scores highest for importance
68%
62%
61%
57%
40%
36%
Internet
Consumer reports
Friends' advice
Car dealershippersonnel
Car magazines
Brochures
Base: All users who used … as an information source
Top sources ranked according to those scoring Extremely/Very important
Extremely important rating
27%
22%
25%
27%
12%
8%
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The net is usually the FIRST used source
Source 1st used 2nd used 3rd used Total used 1st/2nd/3rd
Base: All who used …. as an information source
Car dealership personnel
Internet
Friends’ advice
Car mags
Consumer reports
26% 25% 33% 84%
57% 28% 6% 91%
38% 26% 18% 82%
22% 19% 28% 69%
19% 32% 24% 76%
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The role of the Internet
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4.1
4.9
3.7
2.93.2
2.7
0
1
2
3
4
5
6
All New Car Buyers Used Car Buyers
Intention to purchase Research conducted
Mean no. mths prior to purchase
Research is started on average threemonths prior to purchase
Base: All car purchasers using Internet for research
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The majority use the internet throughout the process
Only at the very early stages Only once I had/have decided on a particular make/model of car
Only towards the end of the decision making process
Throughout
Other/DK
14%
17%
10%
56%
3%
Base: All car purchasers using Internet for research
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19
25
16
11
0
5
10
15
20
25
30
Total Hrs Total Hrs - New carbuyers
Total Hrs - Usedcar buyers
Hrs Online
Mean No. Hrs
Online accounts for over half the total research hours
58% of Total Hrs
Base: All car purchasers using Internet for research
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General car websites are most popular
32%
48%
60%
67%General car related
Car manufacturer
Car dealership
Other
Base: All car purchasers using Internet for research
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What the car buyers said….
“You can easily see all the deals
out there”
“If you get the right site you should
receive impartial information”
“When I had my mind made up I went to the actual
Toyota web site and it gave me loads of things I hadn’t
thought of”
“Ability to compare many models in one place, to see all the options available”
“A vast amount of unbiased information”
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79%
52%
49%
49%
38%
37%
17%
12%
8%
2%
Price Range
How to pay for car
Make/brand of car
Model
Specifics about spec/extras
Part exchange
Insurance provider
Dealer(s)
Any financing institutions
None of these
Base: All car purchasers using Internet for research
Decisions made prior to online research:
Car buyers using the internet are open to Influence
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79%
52%
49%
49%
38%
37%
17%
12%
8%
2%
Price Range
How to pay for car
Make/brand of car
Model
Specifics about spec/extras
Part exchange
Insurance provider
Dealer(s)
Any financing institutions
None of these
Base: All car purchasers using Internet for research
Decisions made prior to online research:
Car buyers using the internet are open to Influence
BUT 42% will have changed their mind in at least one area as a direct result of online research ….
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Decisions shifted after researching online
5%
7%
8%
9%
12%
13%
14%
14%
17%Insurance provider
Dealer(s)
Specifics about spec/extras
Model
Price Range
Make/brand of car
Part exchange
Any financing institutions
How to pay for car
Base: All who had made a decision on … prior to net research
% of those having made the decision prior to researching online
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What did they use the Internet for?
10%
12%
13%
14%
20%
68%
64%
58%
57%
56%
48%
41%
35%
34%
29%
Compare prices
View images of car exterior
General research about make of car
Read vehicle reviews
Compare makes/models of cars
View images of car interior
Research details about vehicle spec
Research insurance options
Find a dealership
Research special offers/discounts
Order a brochure
Customise a vehicle
Vehicle financing
Dealership quote
Book a test drive
Base: All car purchasers using Internet for research
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How useful were the activities?
39%
41%
63%
72%
72%
78%
86%
71%
79%
75%
88%
82%
75%
71%
62%
Compare prices
View images of car exterior
General research about make of car
Read vehicle reviews
Compare makes/models of cars
View images of car interior
Research details about vehicle spec
Research insurance options
Find a dealership
Research special offers/discounts
Order a brochure
Customise a vehicle
Vehicle financing
Dealership quote
Book a test drive
Base: All who used each activity
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19%
10%
9%
6%
2%
17%
14%13%
2%3%
2%1%
Base: All considering the Internet useful to conduct activities online
Compare prices
General research about make of car
Compare makes/models of car
Read vehicle reviews
Research insurance options
Order a brochure
Dealership quote
Research vehicle spec
View images of car exterior
Find a dealership
View images of car interior
Customise a vehicle
Price Comparison is considered the Most Useful Activity to Conduct Online
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Attitudes towards the use of the internet for car purchasing
59%
19%
28%
28%
11%
9%
31%
Tend to Agree Agree Strongly
10%
18%
22%
4%
11%
19%
Tend to Disagree Disagree Strongly
The Internet has had a significant impact on the decisions I have
made about my recent vehicle purchase
In the future I would consider buying a
new car online
In the future I would consider
buying a used car online
TOTAL DISAGREE TOTAL AGREE
14%
29%
41%
37%
30%
Base: All car purchasers using Internet for research
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Advantages & disadvantages of the internet
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Perceived advantages of the internet
4%4%
4%
6%
7%
8%
8%
9%
10%
15%
4%
3%
3%
3%3%
Faster/Saves time
Allows price/deal/offer comparisons
Easy access to information
Easy comparsions of makes/models
No sales pressure
Breadth of information
No need to leave the house
Wider choice of vehicles available
Can acess 24/7
Easy/convenient
Cheaper
Browse at own pace
Good information source
Independent unbiased opinions
Car spec/tech details
Spontaneous mentions
Base: All car purchasers
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What the car buyers said… advantages
“The main advantages are that you don’t have to spend time searching garage forecourts or
showrooms”
“It makes finding out stuff less
pressurised and less intimidating”
“I can research any car I wish without all the leg
work and annoying/pushy salesmen”
“Fast access to information, easy to
compare similar spec cars”
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Perceived disadvantages of the internet
2%
2%
3%
3%
3%
4%
5%
6%
6%
18%
2%
2%
Can't see vehicle in person
Can't test drive
Can't touch/feel vehicle
Inaccurate/biased info
Can't examine car
Impersonal/ no face to face contact
Time consuming
Can't ask questions
Difficult to find relevant info
Not safe/security concerns
Out of date info
Cannot Trust Sellers
Base: All car purchasers
Spontaneous mentions:
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“Can only really judge the vehicle in
the flesh”
“Its not the same as seeing the car for yourself”
“You can’t get a feel for the car, especially if it is
not new”
“It doesn’t always give a true likeness, it’s
easy to put up pictures of a better spec vehicle and to hide damage ”
What the car buyers said… disadvantages
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Summary
• A third of all adults who’ve bought a car in the last 6mths, used the internet in the decision making process.
• The internet is the 3rd most popular source of information used in the car purchase decision making process. Only Car Dealers (52%) and advice from friends and family (38%) are more popular.
• The internet is the no.1 MEDIA source of information for all car buyers - beating car magazines into 2nd place.
• Nearly 7 out of 10 (68%) purchasers who used the net for car research claimed that it was extremely or very important making it the highest rated source of information
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Summary
• When looking at the order that information sources were used, 57% of recent purchasers using the internet claimed it was the first source used with more than nine out of ten (91%) using it as either their first, second or third source.
• Even though some purchasers claim to have made decisions before using the internet nearly half change their mind on some aspect of their purchase following online research. Insurance, dealer, price & model seem most likely to be reconsidered
• Similarly, more than half (59%) of purchasers using the Internet agree that the Internet has had a significant impact on the decisions made about their recent purchase
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Summary
• Price comparisons were the most popular activity conducted online by purchasers and were considered the most useful activity to conduct online
• Saving time, price & model comparisons, easy access and lack of sales pressure were the most commonly mentioned advantages of researching car purchases online.